Bank Century Fallout Spreads as Indonesia’s Mulya Investigated

Bank Indonesia Deputy Governor Budi Mulya became the latest target of probes into the 2008 PT Bank Century bailout that have threatened President Susilo Bambang Yudhoyono’s ability to fulfill his economic agenda.

Mulya is under investigation by the state auditor regarding a “personal” 1 billion rupiah ($112,000) loan he obtained from the former owner of Bank Century, Difi Johansyah, a spokesman at Bank Indonesia in Jakarta, said yesterday. The deputy governor was relieved of his role as head of monetary policy operations as of the end of last month while retaining the deputy’s post, Johansyah said. Mulya didn’t answer calls to his mobile phone seeking comment yesterday and today.